News Column

Stocks Extend Recent Gains In Early Trading - US Commentary

August 11, 2014

WASHINGTON (Alliance News) - Stocks gained ground in early trading on Monday, building on the strong advance posted at the end of last week. Some hope that the tense geopolitical climate might be improving helped open the door to additional buying.

About an hour into the trading session, The Dow is up nearly 44 points, or 0.26%, to 16,598. The Nasdaq is higher by about 33 points, or 0.77%, to about 4,404. The S&P 500 has climbed 9 points, or 0.47%, to reach nearly 1,941.

On Friday, the major averages moved sharply higher, partly offsetting steep losses posted over the previous few sessions. The markets benefited from bargain hunting as well as easing concerns about the situation in Ukraine.

With the gains, the major averages all moved higher for the week. The S&P 500 gained 0.3%, while the Dow and the Nasdaq both rose by 0.4%.

Stocks have gotten a boost on Monday from dovish remarks by a top Federal Reserve official. US Federal Reserve Vice Chair Stanley Fischer said that US and global recoveries have been "disappointing" so far and the latest recession may have permanently hampered economic potential.

In corporate news, online travel agency Priceline Group Inc. (PCLN) reported increased profit for the second quarter that topped estimates. Shares of Priceline are higher by 3%, rising USD39.09 to USD1,320.65.

Meanwhile Dean Foods Co. (DF) is moving the opposite direction on earnings news. The milk producer reported a loss for the second quarter that narrowed from last year, reflecting higher sales and lower expenses. However, the company reported an adjusted loss for the quarter as well, while analysts' expected the company to report an adjusted profit. Higher raw milk costs weighed on the bottom line.

Shares of Dean Foods are down in early trading, falling USD1.01, or 6.4%, to USD14.81.

There are no major economic reports set to be released today, kicking off a slow start to the week in terms of data. The pace of releases picks up later in the week, with some closely watched reports set to come out. Figures on retail sales, jobless claims and producer prices will receive attention later in the week.

Looking to overseas markets, Asian stocks are showing gains as well. China's Shanghai Composite index rose 1.4% and Japan'sNikkei rebounded from recent losses, jumping 2.4%.

European stocks are higher as well. Germany is leading the charge, up 1.8%. France and the UK are posting notable gains as well, with advances of 1.1% and 1%, respectively.

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Source: Alliance News

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